Slow but steady wins the race when it comes to improving your credit score. But if you need a boost—fast—there are still some tricks you can employ.
Better scores are on the horizon for some borrowers. FICO, the scoring models most financial institutions use to assess creditworthiness, will undergo revisions as early as this fall that could help many people get better rates on credit cards, mortgages and other loans. Scores, which range from 300 to 850 (the higher the better), are based on information about your credit use and history from the three major bureaus, Equifax, Experian and TransUnion.
The new version of FICO will give less weight to medical debts in collections (which represent about half of all unpaid collections), as well as collection debts already paid. Under the current model, settled collections can be as damaging to your score as those still unpaid.